Introduction

This subsector includes industries that manufacture surgical, dental and optical instruments and supplies; recreational goods such as sporting equipment, toys, office supplies and musical instruments; and several other items for daily use. Many of its industries rely heavily on export activity and research and development investments to develop innovative products.

Fast Facts

Miscellaneous manufacturing provided about 30,500 direct jobs in 2016, as well as another 28,500 indirect jobs.

The subsector’s GDP totaled $3.0 billion in 2015.

Average annual wages in the subsector were about $53,000 in 2016.

Subsector exports were more than $4.9 billion in 2016

Long-Term Employment Trends

Texas’ subsector employment was about 30,500 in 2016, down from its peak of nearly 40,000 jobs in 1998. In 2016, Texas and U.S. subsector employment was down 19 percent and 14 percent, respectively, from 1990s levels (Exhibit 4).

Sources: U.S. Bureau of Economic Analysis and Texas Comptroller of Public Accounts

Subsector Economic Output Trends

This subsector contributed $3 billion to Texas’ GDP in 2015. In inflation-adjusted dollars, the state’s subsector GDP was the same in 2015 as in 1997. The U.S. subsector GDP, by comparison, rose 35 percent (Exhibit 5).

Despite falling subsector employment levels and stagnant GDP growth in Texas, the subsector’s economic output per worker rose from about $70,900 in 1997 to $91,900 in 2015.

Industry Concentration in Miscellaneous Manufacturing

The subsector and most of its industries have a lower share of employment in Texas than nationally, as gauged by location quotient (LQ), a measure of employment concentration in a given area; the higher the LQ value, the more “concentrated” the industry. Only one industry — jewelry and silverware manufacturing — has an employment share in the state that is larger than the national share. Its 1.10 LQ means its share is 10 percent higher in Texas than nationally (Exhibit 6).

The medical equipment and supplies industry LQ was 0.47 in 2016 (or 47 percent of the national share), down from a 0.63 LQ in 2001. A low and falling LQ generally indicates that the industry would require large investments to achieve any growth. The Upper East region, however, in areas such as Jacksonville and Athens, contains pockets of regional industry competitiveness.

Exhibit 6: Miscellaneous Manufacturing Industries

Description

NAICS Code

2016 Jobs

2001 to 2010
% Change

2010 to 2016
% Change

2016 Average Salaries

2001 Location Quotient

2016 Location Quotient

Medical Equipment and Supplies

33911

11,929

-16%

2%

$56,821

0.63

0.47

Jewelry and Silverware

33991

2,435

-24%

6%

$53,971

0.78

1.1

Sporting and Athletic Goods

33992

2,235

-50%

23%

$53,170

0.77

0.62

Doll, Toy, and Game Manufacturing

33993

304

-34%

41%

$46,913

0.17

0.33

Office Supplies (except Paper) Manufacturing

33994

931

-7%

-5%

$34,514

0.45

0.97

Sign Manufacturing

33995

6,098

-15%

39%

$44,948

0.99

0.97

All Other Miscellaneous Manufacturing

33999

6,560

-36%

12%

$55,805

0.84

0.69

Subsector Total

339

30,493

-25%

12%

$52,953

0.71

0.62

Sources: Emsi and Texas Comptroller of Public Accounts

Conclusion

Manufacturing is an important part of the Texas economy, driving innovation and providing thousands of jobs with high wages. While the sector’s employment has declined in the last 20 years, its contribution to Texas GDP rose more than twice as much as in the U.S. as a whole, and exceeded the growth in Texas’ total GDP by 15 percent.

The miscellaneous manufacturing subsector, including medical equipment and supplies and a variety of recreational goods, consists of innovative, advanced industries and is export-intensive. The subsector is not highly concentrated in Texas; its overall share of Texas employment is just 62 percent of that in the U.S. High regional employment concentrations, however, can be found in the Upper East region.

HB855 Browser Statement

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.